U.S. stocks open lower as yields rise on hopes of China COVID policy relief

U.S. stock indexes opened lower on Monday as China began easing its COVID-19 restrictions in major cities, while investors awaited more economic data ahead of next week’s Federal Reserve policy meeting. The S&P 500 fell 0.6%, while the Dow Jones Industrial Average declined 0.7% and the Nasdaq Composite shed 0.5%. The 10-year Treasury yield advanced to 3.550% from 3.502% on Friday. Several Chinese cities relaxed movement curbs and testing mandates over the weekend, raising hopes for a broader scaling back of the world’s most stringent anti-COVID controls. On Monday, commuters in Beijing and at least 16 other cities were allowed to board buses and subways without a virus test in the previous 48 hours for the first time in months. Shares of Chinese and Hong Kong stocks rallied on Monday, while the U.S.-traded Chinese stocks are on pace to book their biggest advance since at least March.

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